|
200102149 (Page-2 of 5)
<br />TOGETHER with all the improvements now or hereafter' erected on the property, and all easements, rights,
<br />appurtenances and rents (subject however to the rights and authorities given herein to Lender to collect and apply such
<br />rents), all of which shall be deemed to be and remain a part of the property covered by this Deed of Trust; and all of the
<br />foregoing, together with said property (or the leasehold estate if this Deed of Trust is on a leasehold) are hereinafter
<br />referred to as the "Property."
<br />Borrower covenants that Borrower is lawfully seised of the estate hereby conveyed and has the right to grant and convey
<br />the Property, and that the Property is unencumbered except for encumbrances of record. Borrower covenants that
<br />Borrower warrants and will defend generally the title to the Property against all claims and demands, subject to
<br />encumbrances of record.
<br />UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows:
<br />1. Payment of Principal and Interest. Borrower shall promptly pay when due the principal and interest
<br />indebtedness evidenced by the Note, including any variations resulting from changes in the contract rate, and other
<br />charges as provided in the Note.
<br />2. Funds for Taxes and Insurance. Subject to applicable law or written waiver by Lender, Borrower shall pay to
<br />Lender on the day monthly payments of principal and interest are payable under the Note, until the Note is paid in full,
<br />a sum (herein "Funds ") equal to one - twelfth of the yearly taxes and assessments (including condominium and planned
<br />unit development assessments, if any) which may attain priority over this Deed of Trust, and ground rents on the
<br />Property, if any, plus one - twelfth of the yearly premium installments for hazard insurance, plus one - twelfth of yearly
<br />premium installments for mortgage insurance, if any, all as reasonably estimated initially and from time to time by
<br />Lender on the basis of assessments and bills and reasonable estimates thereof. Borrower shall not be obligated to make
<br />such payments of Funds to Lender to the extent that Borrower makes such payments to the holder of a prior mortgage
<br />or deed of trust if such holder is an institutional lender.
<br />If Borrower pays Funds to Lender, the Funds shall be held in an institution the deposits or accounts of which are
<br />insured or guaranteed by a Federal or state agency (including Lender if Lender is such an institution). Lender shall apply
<br />the Funds to pay said taxes, assessments, insurance premiums and ground rents. Lender may not charge for so holding
<br />and applying the Funds, analyzing said account or verifying and compiling said assessments and bills, unless Lender pays
<br />Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and Lender may
<br />agree in writing at the time of execution of this Deed of Trust that interest on the Funds shall be paid to Borrower, and
<br />unless such agreement is made or applicable law requires such interest to be paid, Lender shall not be required to pay
<br />Borrower any interest or earnings on the Funds. Lender shall give to Borrower, without charge, an annual accounting of
<br />the Funds showing credits and debits to the Funds and the purpose for which each debit to the Funds was made. The
<br />Funds are pledged as additional security for the sums secured by this Deed of Trust.
<br />If the amount of the Funds held by Lender, together with the future monthly installments of Funds payable prior to
<br />the due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said
<br />taxes, assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrower's option,
<br />either promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the
<br />Funds held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall
<br />due, Borrower shall pay to Lender any amount necessary to make up the deficiency in one or more payments as Lender
<br />may require.
<br />Upon payment in full of all sums secured by this Deed of Trust, Lender shall promptly refund to Borrower any funds
<br />held by Lender. If under paragraph 17 hereof the Property is sold or the Property is otherwise acquired by Lender,
<br />Lender shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds
<br />held by Lender at the time of application as a credit against the sums secured by this Deed of Trust.
<br />3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under the
<br />Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by
<br />Borrower under paragraph 2 hereof, then to interest payable on the Note at the applicable contract rate, and then to the
<br />principal of the Note.
<br />4. Prior Mortgages and Deeds of Trust; Charges; Liens. Borrower shall perform all of Borrower's obligations
<br />under any mortgage, deed of trust or other security agreement with a lien which has priority over this Deed of Trust,
<br />including Borrower's covenants to make payments when due. Borrower shall pay or cause to be paid all taxes,
<br />assessments and other charges, fines and impositions attributable to the Property which may attain a priority over this
<br />Deed of Trust, and leasehold payments or ground rents, if any.
<br />5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property
<br />insured against loss by fire, hazards included within the term "extended coverage," and such other hazards as Lender
<br />may require and in such amounts and for such periods as Lender may require.
<br />The insurance carrier providing the insurance shall be chosen by the Borrower subject to approval by Lender;
<br />provided, that such approval shall not be unreasonably withheld. All insurance policies and renewals thereof shall be in a
<br />form acceptable to Lender and shall include a standard mortgage clause in favor of and in a form acceptable to Lender.
<br />Lender shall have the right to hold the policies and renewals thereof, subject to the terms of any mortgage, deed of trust
<br />or other security agreement with a lien which has priority over this Deed of Trust.
<br />In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof
<br />of loss if not made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of
<br />the Property damaged, if the restoration or repair is economically feasible and Lender's security is not lessened. If the
<br />restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be
<br />applied to the sums secured by this Security Instrument, whether or not then due, with any excess paid to Borrower. If
<br />Borrower abandons the Property, or does not answer within 30 days a notice from Lender that the insurance carrier has
<br />offered to settle a claim, then Lender may collect the insurance proceeds. Lender may use the proceeds to repair or
<br />restore the Property or to pay sums secured by this Security Instrument, whether or not then due. The 30-day period will
<br />begin when the notice is given.
<br />If the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the date
<br />notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender
<br />is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the
<br />Property or to the sums secured by this Deed of Trust.
<br />01 -01 -00 DOT
<br />I IIIIIII IIII VIII VIII VIII' IIII VIII IIIIII VIII IIIIII III VIII IIIIII IIIIII VIII III VIII VIII VIII IIIIIII IIII IIII (IIII VIII VIII VIII VIII IIIIIII II IIII NE007942
<br />* B02lDO8FDO97DOT9000NE0079420 * *BOPP * ORMI Nai
<br />
|